my monstrous world

Wednesday, June 07, 2006
The aftermath

This year's corporate finance paper was not following the trend set by past year papers. Most of the questions that I have spotted did not come out. Among the few are : -

1) Black scholes & MM theory combined
2) Cap structure ( Boom and crisis )

For those that are regarded as the standard questions such as :

Question 1 : CAPM
Question 2 : Binomial Pricing

Upon pondering for 20 mins on my choice of questions, I struck them both off. As I was not very sure of part 2 of question 1 and also question 2 MIGHT seem 'Doable', but after working in pencil to get the general feel of the question. I found that I was better off doing FST, question 4 even though I had not really studied for it.

Also Question 3 - Beta. The Sign for beta came out as a 'box'. Hence decided to do the question because of potential sympathy marks and benefits that would be given to us because of the wrong symbol. haha.

For section B
I did the questions 6, 8. Those were pretty standard questions. Sort of a memory dump. Time is a more important factor here then the fact of being able to do it.
However 5-7 marks from these questions asked about our understanding of the topics, dividend policy and capital structure, and I guess these marks were intended to seperate the better students from the normal ones.

Mergers and EMH was also out of the question for me as I had not even touch those topics.

Overall, I feel the paper was okay with my choice of questions....

Next up. MM and ICP

Oh how I dread ICP.............. wHY diid I Taaaakeee itttt innnnn theee 1st PLACE......

roar! - 12:53 AM
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